"Corridor Agreement" Opens More Questions on Role of BONY Mellon

Jan 8, 2020

SO BONY mellon is known to be named as “trustee” over what is probably a nonexistent trust with nonexistent beneficiaries since investors do not qualify as beneficiaries of any trust. The authority of BONY Mellon to represent “certificate holders” is never described in any allegations or exhibits. It is only a label.

Dig deeper and you will find actual trust agreements that are kept from court view, and still others like the “Corridor Agreement” which raises more questions than it could possibly answer found at https://www.lawinsider.com/contracts/dSu5MtwMEFKTTYLOTpEZs/cwabs-asset-backed-certificates-trust-2006-11/corridor-contract-administration-agreement/2006-08-08

Some quotes from the Corridor Agreement

This CORRIDOR CONTRACT ADMINISTRATION AGREEMENT, dated as of June
29, 2006 (this "Agreement"), among THE BANK OF NEW YORK ("BNY"), as Corridor
Contract Administrator (in such capacity, the "Corridor Contract
Administrator") and not in its individual or corporate capacity but solely as
Trustee under the Pooling and Servicing Agreement referred to below (in such
capacity, the "Trustee"), and COUNTRYWIDE HOME LOANS, INC. ("CHL").

            WHEREAS, CHL is a party to an interest rate corridor agreement
between CHL and Bear Stearns Financial Products Inc. (the "Counterparty"),
with a Trade Date of June 22, 2006 and a reference number of FXNEC8436 (the
"Corridor Contract"), a copy of which is attached to this Agreement at Exhibit
A;

EDITOR'S NOTE: CHL is described as having some interest in some interest rate that appears
 to be a reference to the rate paid to certificate holders who received an unsecured
Promise to make payments to owners of certificates issued by Bear Stearns in the name
of a trust that either did not exist or barely existed with virtually no assets and certainly
no ownership of loans.

WHEREAS, CHL is conveying certain mortgage loans and other related
assets to a trust fund (the "Trust Fund") created pursuant to a Pooling and
Servicing Agreement, dated as of June 1, 2006 (the "Pooling and Servicing
Agreement"), among CWABS, Inc., as depositor, CHL, as a seller, Park Monaco
Inc., as a seller, Park Sienna LLC, as a seller, Countrywide Home Loans
Servicing LP, as master servicer (the "Master Servicer"), the Trustee, and The
Bank of New York Trust Company, N.A., as co-trustee, with respect to the
CWABS, Inc. Asset-Backed Certificates, Series 2006-11;

            WHEREAS, simultaneously with the execution and delivery of this
Agreement, CHL is assigning all of its rights, and delegating all of its
duties and obligations (other than its obligation to pay the Fixed Amount and
any fees, if applicable (as defined in the Corridor Contract)), under the
Corridor Contract to the Corridor Contract Administrator, pursuant to the
Assignment Agreement, dated as of the date hereof (the "Assignment
Agreement"), among CHL, as assignor, the Corridor Contract Administrator, as
assignee, and the Counterparty;

            WHEREAS, CHL desires that the Net Payments (as defined below) on
the Corridor Contract be distributed to the Trustee on behalf of the Trust
Fund to be applied for the purposes specified in the Pooling and Servicing
Agreement and that the Excess Payments (as defined below) on the Corridor
Contract be distributed to CHL;

       
            Controlling Party: As defined in Section 5.

            Corridor Contract Account: The separate account created and
maintained by the Corridor Contract Administrator pursuant to Section 3 with a
depository institution in the name of the Corridor Contract Administrator for
the benefit of CHL and the Trustee on behalf of the Holders of the Benefited
Certificates and designated "The Bank of New York for Countrywide Home Loans,
Inc. and certain registered Holders of CWABS, Inc., Asset-Backed Certificates,
Series 2006-11". Funds in the Corridor Contract Account shall be held for CHL
and the Trustee on behalf of the Holders of the Benefited Certificates as set
forth in this Agreement.


EDITOR'S NOTE: You really need to read this carefully. CHL is assigning without
any warranty of ownership because it has no ownership. It is using labels to create
a seller and other roles without any descriptions of ownership or authority or even
a description of what is being sold and how the sale was consummated ---
mostly because there was no such sale except for purposes of getting the loans off
the books of Bear Stearns and onto nonexistent financial records of the fictitious trust.
Notice also the specific wording that there are recipients of payments described as
 . certain holders of interests in those payments and excess payments.

Unlike most contracts drafted by banks everything is left undefined.
In most contracts "holders" would be specifically defined either in the
agreement or by reference to a separate agreement where the information
could be found. Instead they are relying upon labels and confusion so nobody
asks questions.

And then further down you see that BONY is not liable for anything done in its name.
So the question is how does BONY Mellon claim to be trustee and at the same time
have separate agreements inuring to the benefit of CHL (now Bank of America)
and a securities brokerage firm? Unless BONY Mellon is in fact trustee for Bear Stearns
there would be an bvious conflict of interest preventing BONY from being a trustee.